ImageWare wraps $3 million private placement; HydraLogic raises C$2.5 million

By LLuvia Mares

New York, Sept. 26 - Regardless of market turmoil, activity in the PIPEs sector has held firm this week. A number of deals surfaced Wednesday including ImageWare Systems, Inc., which announced it closed a $3 million private placement of stock and warrants.

The company sold 2 million shares of stock at $1.50 each and warrants for an additional 1 million shares to a group of accredited investors.

The warrants are exercisable at $1.67 each beginning March 26, 2008. The warrants expire in 5.5 years.

ImageWare's stock (Amex: IW) closed at $1.68 on Wednesday, down $0.04 from the $1.72 at close on Tuesday.

Empire Financial Group, Inc. acted as placement agent in the transaction.

"It's a high growth industry with a platform of technology that is open, so it works with different types of hardware," a company insider said. "The company also has very strong partners which it works closely with, and they have very experienced management teams. Those are some of the main reason why ImageWare is such a good investment."

Proceeds will be used for general working capital purposes.

"They have fulfilled their current need for money," said the insider. "However they are not ruling out other financing options."

San Diego-based ImageWare specializes in developing identity management solutions, providing biometric, secure credential and law enforcement technologies.

HydraLogic sells C$2.5 million

HydraLogic Systems Inc. announced it completed a C$2,499,999.60 private placement of units on Sept. 21.

"The undertaking of our two private placements by CCM adds an important new institutional fund and an opportunity to increase the company's presence within the U.S. investment community," said Michael Beckley, company president and chief executive officer, in a press release. "This new capital is expected to support accelerated growth and the emergence of our products into new market segments in 2008."

The company sold 8,333,332 units at C$0.30 apiece. Each unit consists of one common share, a half class G share warrant and a half class H share warrant.

Each whole class G warrant is exercisable at C$0.50 for two years. Each whole class H warrant is exercisable at C$0.80 for two years.

HydraLogic's stock (TSX Venture: HLS) closed at $0.24 on Sept. 21, when the deal priced, and did not see any movement Wednesday.

Capstone Investments was the agent and Barretto Securities Inc. was the finder.

All of the securities have a four-month hold period.

Barrie, Ont.-based HydraLogic produces technologies for the pest control, agriculture, solid and liquid waste and water conditioning markets.

Clearly Canadian raises C$9.36 million

Clearly Canadian Beverage Corp. announced said it has completed a $9.36 million private placement of warrants and a 9% senior convertible note.

"With the completion of these transactions, we will have over $10 million of cash to expand the execution of our growth plan and to fulfill our commitment to deliver consumers healthier choices," said Brent Lokash, company chief executive officer, in a press release.

"The past two years have seen Clearly Canadian build a diversified foundation of recognizable product lines and world class sales and marketing talent, resulting in the resurgence of our brand name."

Lokash said in the release that, for the first time in years, the company is on track to deliver solid year-over-year revenue growth.

"Now, with the support of experienced financial institutions, we have the tools necessary to once again achieve the success this Company enjoyed when it helped launch the alternative beverage industry," he said.

The note is convertible at $2.33 and bears interest at 9%.

The investors also received 4,017,167 five-year warrants. Half of the warrants are exercisable at $2.33 and half at $2.56.

The company's stock (OTCBB: CCBEF) closed at $2.15 on Wednesday, down $0.07 from the $2.22 at close on Tuesday.

Proceeds will be used for general working capital.

Based in Vancouver, B.C., Clearly Canadian is a beverage bottling company.

Sun Cal Energy closes a $1 million equity financing

Sun Cal Energy Inc. announced it closed a $1 million equity financing.

The transaction was made between the company and a group of private investors.

Proceeds raised in the equity financing will be used to finalize the company's letter of intent, which was announced Tuesday, to acquire a 100% working interest in 8,695 acres of leases in the Cherokee and Forest City Basins of Kansas.

Its stock (OTCBB: SCEY) closed at $1.42 on Wednesday, up $0.05 from the $1.37 at close on Tuesday.

"We are very excited to announce successful flow rates on our initial well and thus enter into production. We look forward to building on these results and to further develop our portfolio of oil and gas assets, two of which are now in production," Lewis Dillman, company president and chief executive officer, said in a press release.

"Monday, regarding the company's letter of intent. The successful drilling of our Hobart lease validates our strategy to acquire low risk, high potential assets and ultimately our goal to achieve production and cash flow."

Further details on the deal were not readily available Wednesday evening.

San Francisco-based Sun Cal Energy specializes in energy exploration.

Genelabs plans $23.7 million direct placement

Genelabs Technologies, Inc. announced it is negotiating a $23.7 million direct financing of stocks and warrants with a group of institutional investors.

The company will sell 12.9 million shares of stock and warrants to purchase 2.6 million shares at $1.84 per unit, each unit consisting of one share. The warrants are exercisable at $2.08 each and expire in five years.

Its stock (Nasdaq: GNLB) closed at $1.83 on Tuesday, when the deal priced, and did not see any change Wednesday.

Deutsche Bank Securities Inc. acted as placement agent.

The closing is expected to take place on Oct. 1.

Proceeds from the transaction will be used for the company's ongoing hepatitis C virus drug discovery programs and for general corporate purposes.

Redwood City, Calif.-based Genelabs is a global biopharmaceutical and diagnostics company specializing on gene-regulating drug discovery, infectious diseases including hepatitis, and immunological disorders.

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